Technical analysis of USDX for December 1, 2016

The Dollar index continues to trade sideways despite an attempt yesterday to break above 101.80. The sideways consolidation helps bulls relieve the overbought conditions and prepare for the next leg up towards 102.50. A trend remains bullish.

Blue line - support

The Dollar index is diverging while trading near its highs. Price is trading above short-term support at 100.80. A break below the blue trend line support that coincides with the Ichimoku cloud support, will open the way for a push towards 99.

The Dollar index is trading around its monthly 61.8% Fibonacci retracement of the entire decline from July 2001 highs. This is important long-term resistance. A reversal from current levels is justified but still not confirmed. Bulls need to be very cautious.The material has been provided by InstaForex Company - www.instaforex.com